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Demand Media Inc (NYSE:DMD)
EV/EBITDA
-0.25 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Demand Media Inc's enterprise value is $56.1 Mil. Demand Media Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $-227.2 Mil. Therefore, Demand Media Inc's EV/EBITDA ratio for today is -0.25.

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Demand Media Inc's stock price is $5.22. Demand Media Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2015 was $-13.74. Therefore, Demand Media Inc's P/E Ratio for today is .

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Demand Media Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=56.089/-227.212
=-0.25

Demand Media Inc's current Enterprise Value is $56.1 Mil.
Demand Media Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 2.597 (Jun. 2014 ) + -227.884 (Sep. 2014 ) + 0.188 (Dec. 2014 ) + -2.113 (Mar. 2015 ) = $-227.2 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Demand Media Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=5.22/-13.739
=

Demand Media Inc's share price for today is $5.22.
Demand Media Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2015 was -0.78 (Jun. 2014 ) + -11.69 (Sep. 2014 ) + -0.929 (Dec. 2014 ) + -0.34 (Mar. 2015 ) = $-13.74.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Demand Media Inc Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 0.000.000.000.000.000.002.463.152.50-0.34

Demand Media Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 3.152.642.252.632.502.193.12-0.67-0.34-0.29
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